21 August 2019 - Parliament of Victoria · Victoria is the national leader in community energy and...
4
Embark Australia Ltd trading as Coalition for Community Energy ABN 76 140 094 882 CAN: 140 094 882 c/o 1/39 Little Collins St Melbourne VIC 3000 COALITION FOR COMMUNITY ENERGY - AUGUST 2019 21 August 2019 Dear Environment and Planning Committee, Submission to the Parliamentary Inquiry into Tackling Climate Change in Victorian Communities Thank you for the opportunity to make a submission to the Parliamentary Inquiry into Tackling Climate Change in Victorian Communities. Victoria is the national leader in community energy and can become the national leader in community-led climate action. Across the country, there are 105 community energy groups and 50 of these are based in Victoria. Responsive policies and programs have enabled these groups to learn about community energy and plan projects that will benefit them. These programs have unlocked a massive volunteer effort across the state that will strengthen local economies, grow clean energy capacity and improve the social license of renewables. As the peak body for the community energy sector, we commend the State Government for its efforts and encourage further action so our sector can reach its full potential. Many of these groups are tackling climate change beyond community energy and looking at zero-net energy and zero-net emissions. About the Coalition for Community Energy The Coalition for Community Energy (C4CE) is a network of over 100 organisations working to grow a vibrant community energy sector. C4CE was founded using a Collaborative Impact approach. C4CE facilitates collaborative Strategic Initiatives that build on the strengths of its member organisations, community energy projects, groups, support organisations and stakeholders in the wider renewable and mainstream energy system to create mutually beneficial outcomes. C4CE’s objectives are to: - Guide and support development of the community energy sector - Create a coordinated voice to better advocate for the needs of the sector - Grow the sector’s profile, influence and membership (beyond the ‘usual suspects’) - Facilitate the alignment of efforts by Members with support, systems, tools and training which enable collaboration for collective impact - Identify and create strategic opportunities and attract investment for the sector - Coordinate strategic initiatives which build the knowledge, know-how and capacity of Members and the sector. Image by Community Power Agency cpagency.org.au
Transcript of 21 August 2019 - Parliament of Victoria · Victoria is the national leader in community energy and...
Embark Australia Ltd trading as Coalition for Community Energy ABN 76 140 094 882 CAN: 140 094 882 c/o 1/39 Little Collins St Melbourne VIC 3000
COALITION FOR COMMUNITY ENERGY - AUGUST 2019
21August2019
DearEnvironmentandPlanningCommittee,
SubmissiontotheParliamentaryInquiryintoTacklingClimateChangeinVictorianCommunities
ThankyoufortheopportunitytomakeasubmissiontotheParliamentaryInquiryintoTacklingClimateChangeinVictorianCommunities.Victoriaisthenationalleaderincommunityenergyandcanbecomethenationalleaderincommunity-ledclimateaction.
Acrossthecountry,thereare105communityenergygroupsand50ofthesearebasedinVictoria.Responsivepoliciesandprogramshaveenabledthesegroupstolearnaboutcommunityenergyandplanprojectsthatwillbenefitthem.Theseprogramshaveunlockedamassivevolunteereffortacrossthestatethatwillstrengthenlocaleconomies,growcleanenergycapacityandimprovethesociallicenseofrenewables.Asthepeakbodyforthecommunityenergysector,wecommendtheStateGovernmentforitseffortsandencouragefurtheractionsooursectorcanreachitsfullpotential.Manyofthesegroupsaretacklingclimatechangebeyondcommunityenergyandlookingatzero-netenergyandzero-netemissions.
AbouttheCoalitionforCommunityEnergyTheCoalitionforCommunityEnergy(C4CE)isanetworkofover100organisationsworkingtogrowavibrantcommunityenergysector.C4CEwasfoundedusingaCollaborativeImpactapproach.C4CEfacilitatescollaborativeStrategicInitiativesthatbuildonthestrengthsofitsmemberorganisations,communityenergyprojects,groups,supportorganisationsandstakeholdersinthewiderrenewableandmainstreamenergysystemtocreatemutuallybeneficialoutcomes.C4CE’sobjectivesareto:- Guideandsupportdevelopmentofthecommunityenergysector- Createacoordinatedvoicetobetteradvocatefortheneedsofthesector- Growthesector’sprofile,influenceandmembership(beyondthe‘usualsuspects’)- FacilitatethealignmentofeffortsbyMemberswithsupport,systems,toolsandtrainingwhich
enablecollaborationforcollectiveimpact- Identifyandcreatestrategicopportunitiesandattractinvestmentforthesector- Coordinatestrategicinitiativeswhichbuildtheknowledge,know-howandcapacityofMembersand
thesector.
ImagebyCommunityPowerAgencycpagency.org.au
hrosssod
Typewritten Text
Climate Change Inquiry Submission S066 Received 26/08/2019
Embark Australia Ltd trading as Coalition for Community Energy ABN 76 140 094 882 CAN: 140 094 882 c/o 1/39 Little Collins St Melbourne VIC 3000
COALITION FOR COMMUNITY ENERGY - AUGUST 2019
Whatarethebenefitsofcommunityenergy?IntheNationalCommunityEnergyStrategy,C4CEdefinescommunityenergyasfollows:
CommunityEnergyisthetermusedtodescribethewiderangeofwaysthatcommunitiescandevelop,deliverandbenefitfromsustainableenergy.Itcaninvolvesupply-sideprojectssuchasrenewableenergyinstallationsandstorage,anddemand-sideprojectssuchascommunityeducation,energyefficiencyanddemandmanagement.Communityenergycanevenincludecommunity-basedapproachestosellingordistributingenergy.
Itisparticularlyimportanttonotethatcommunityenergyisnotdefinedtechnically,suchasbasedonthescaleofacleanenergyproject(e.g.acommunity-scalesolarfarm),butratherbasedaroundcommunityparticipationandbenefit.Communityenergyprojectsareunique.They:provideproportionatelylargedirectandindirectlocalbenefitsi.e.communityfundsandemploymentopportunities;createnewpathwaysforenvironmentalvolunteeringandclimateactionwithstrongeconomicandcommunitydevelopmentoutcomes;and,offeranewmodelofengagementaroundrenewableenergy,benefittingthebroaderrenewableenergysector.
Wherearewenow?TheVictorianStateGovernmenthastakencommendableactionoverthelasttwotermstoencouragecommunityenergyprojects.Since2015thestategovernmenthas:
- commissionedtheGuidetoCommunity-OwnedRenewableEnergy(2015)- deliveredtheNewEnergyJobsFund(2015)- instigatedtheParliamentaryInquiryintoCommunityEnergyProjects(2016)- fundedanddeliveredtheCommunityPowerHubsPilot(2017-2019)- createdanewPiLoRmethodologyforcommunitygenerators(2018)- fundedtheZ-NETCommunityTransitionPilot(2018)- fundedtheRenewableCommunitiesProgram(2018)- initiatedtheParliamentaryInquiryintoTacklingClimateChangeinVictorianCommunities(2019)
Manyoftheseinitiativeshaveenabledthesectortobecomemoredevelopedandstrengthenedcommunityefforts.However,wenowhavealargenumberofpilotsandpre-developmentprojectsthat,intheabsenceoffederalenergypolicy,donothavefinancialorlogisticalsupportneededtoreachmaturity.Toensurethesepolicyinvestmentsfacilitatethedevelopmentofcommunityenergyprojects,thestategovernmentneedstorefineitspolicyapproach.
Ourplantomaturethecommunityenergysectorinvolvesthefollowingaims:toensureaccessforallVictorianstoparticipateinandbenefitfromtheenergytransition;unlockmid-scalecommunityenergyprojectswhichbenefitcommunities,thedistributionnetwork,theenvironment;and,tosupportcommunity-ledactiononclimatechange.
AplantomaturethesectorC4CEhasconsultedwithcommunityenergygroupsinVictoriaandvariousaffiliatedorganisationsandrecommendsthefollowingsetofpoliciesandprogramstoensuretheVictoriancommunityenergysectorisonapathwaytomaturity.Thefollowingkeypoliciesandprogramswillgreatlyservethesector.Keyitemsareexpandedbelow.
Embark Australia Ltd trading as Coalition for Community Energy ABN 76 140 094 882 CAN: 140 094 882 c/o 1/39 Little Collins St Melbourne VIC 3000
COALITION FOR COMMUNITY ENERGY - AUGUST 2019
1.CommunityEnergyTarget
a. Determineacarve-outoftheVictorianRenewableEnergyTarget(VRET)forcommunityenergyof100MWby2025
b. EstablishaFeed-in-Tariff(FiT)formid-scalecommunityenergyprojectsof6-7cpremiumabovePPA/wholesaleratefor15yearsTheproposedcriteriafortheCEFiTis:
- community-ledprojectorcommunity/developerpartnershipwithbroadlocalsupport- localshareholdinginclusiveofcommunityinvestment(minimum20%),includingcouncil,
waterauthority,etc(>50%total)- projectscale>1MW-10MW- localcontrolanddecision-makingpowerrelatedtotheproject- localdistributionofthesocialandeconomicbenefitsgeneratedthroughtheproject.- projectisappropriatelyscaledtothelocalenvironmentand/orcommunity- projectharnessestheskillsandcapitalofthelocalcommunity
2.SmartEnergyCommunitiesProgram
a. ScaleuptheregionalCommunityPowerHubPilotDeploy6xCommunityPowerHubsineachDELWPregiontothevalueof$10mover4years.
b.Deploystrategiccommunityenergygrantfunding$13mover4years,splitinto:
- firstprojectsstreamforsmall-scaleandreplicableprojects(~$30kpergroup)- mid-scalecommunityrenewablesstreamfordevelopmentphasemilestone-basedgrantsfor
communityrenewables(~$150kpergrant)c.ScaleuptheCommunityTransitionPilotforlighthousecommunities
Enable5xlighthousecommunitiestodeployzero-netemissionmasterplansandprogramsover4yearstothevalueof$5m(LGAscaleorsmaller).FollowingonfromandincludingthesuccessfulHepburnZ-NETprogram.
d.SupportacollaborativeCommunityEnergyCapacityBuildingNetworkFund$2mover4yearstosharethelearningoftheseactivitiesandbuildcapacityacrossVictoriancommunitieswiththesupportofSustainabilityVictoria.
3.SolarforAllPrograma.DevelopaSolarForAllPilot
Fund$750kforaSolarForAllSolarGardenspilotprojectfor1000households.b.CreateaSolarforAllRebate
ExpandtheRentersSolarRebateprogramdeliveredbySolarVictoriatoensurelocked-outenergyusersacrossVictoriacanaccesssolaratscaleviaaSolarForAllRebate.
CommunityEnergyTargetOurmembersarewantingtobuild,ownandoperatemid-scaleprojectsandlikelargedevelopers,theyneedpricecertaintytodeliver.Therecentannouncementofsubsidisedsolarfor650,000householdsandthecontinuedrolloutoftheVictorianRenewableEnergyTarget(VRET)boostshouseholdscaleandlargescalerenewables.Thereisasignificantgapinregardstomid-scalerenewables.Thereisamarketbarrierinthepricingofelectricityinfrastructurethatfailstounlockthesavingsoflocatingenergysupplyneardemand.
Embark Australia Ltd trading as Coalition for Community Energy ABN 76 140 094 882 CAN: 140 094 882 c/o 1/39 Little Collins St Melbourne VIC 3000
COALITION FOR COMMUNITY ENERGY - AUGUST 2019
Therearenoincentivesforthemarkettounlockpublicbenefitssuchasimprovedcommunityresilienceandlocaljobs.Thenextsteptoensurethegovernmentslegacyasarenewableenergyleaderwouldbetounlockmid-scalecommunityenergy,producingapipelineoflocaljobsanddeliveringsignificantregionaleconomicdevelopmentacrossthestate. TheCommunityEnergyTargetandassociatedFiT(describedabove)willensurepricesecurityandaidmid-scaleprojectstogrowacrossthestateandharnesscommunitycapital.TheFiTshouldfollowaprocesswiththefollowingcriteria:- Encouragecollaboration- AnEOIprocesssoprojectscanbidearly,givingthemtheconfidencetodevelop- Besimpletoadminister,withclearobjectivesuccesscriteria- Minimisepoliticalriskthroughnotrequiringministerialordepartmentalsign-off- Includeprojectsoverabroadrangeoftechnologies- BetailoredtovalueanddeliverthemultiplebenefitsassociatedwithCE
Inlieuofthehugeinfrastructurechangesthatneedtooccurtohostourtransition,thereisalreadycapacityissuesandlikelybuildoutdelaysthatwilloccuraswellassignificantsociallicensechallenges.Communityenergyprojectsactasimportantgatekeeperstosociallicenseforthebroaderrenewablesindustryandareverywellsuitedtothemid-scale(1-10MW).Atthisscale,theycanfilluptheexistingdistributionnetworkandavoidcostlyupgradesonthetransmissionnetwork.Atthisscaletheyareachievableforcommunities-bothfinanciallyandfromanassetmanagementperspective.
Utilisingthedistributionnetworkformid-scalecommunityenergyprojectwillensurewecanmorerapidlytransitionandnotwaitfornewlargescaletransmissioninfrastructuretomeettheVRET.Thiswillneedgovernmentsupporttobringnetworkdistributorstothetableinacollaborativeandfixedcostapproach.
ScaleuptheZ-NETCommunityTransitionPilotforlighthousecommunitiesHepburnShirehasshownthestrategicimpactofsupportinga‘lighthouse’communitytogobeyondbeingthefirstzero-netenergytowninAustraliatotacklingthegoalofzero-netemissions.AnurbanexampleistheZeroCarbonMorelandInitiative.Bysupportingcommunitiessuchasthesewithaproventrackrecordtodeployzero-netemissionmasterplansandprogramsover4years(LGAscaleorsmaller)willprovidethemeanstoincubateandmakerealthepathwaystozero-netemissions.C4CErecommendsfivesuchcommunitiesarefasttrackedinthisway.AbroaderapproachWebelievethefollowinghighlevelpolicyobjectiveswouldframethesectorbasedrecommendationsintheprevioussection:
• Setambitiousscience-basedemissionsreductiontargets:aimtokeepglobalwarmingbelow1.5°C.Inaddition,ensuretheVRETisalignedwiththeERTs-currentlytheVRETdoesnotaccountfortherapidtransitiontoEVsinthe50%renewableby2030target.Weneed‘truetargets’thataccountforthisproperly.
• BipartisansupportfortheClimateActtoensurethegoodworkofcommunitiesisnotundoneinfutureyears.
• EstablishadedicatedVictorianClimateChangeActionFund,toensureprojectslikeHepburnZ-NETcanhavesecurelongtermfundingtodeliverourambitiousmasterplan.
• DeliverVictoria'sfirstClimateBudget
Thankyouforyourconsideration,
TheboardofC4CE
